Is this deal even close to being reasonable?
Hi, Im very new to property investing in the US. I was recently offered to be an investor in a mobile home park in South Carolina. The guy who offered the deal had done the sourcing, negotiated the price, done plenty of due diligence, found a lender for half the purchase price, and found a property manager. Basically done all the work. An LLC would own the mobile home park and be liable for the loan.
I was offered to provide the equity for the other half of the purchase price, and in return own half of the LLC. So I would put in all the money but only own half the mobile home park, which doesnt seem like a great deal to me.
Is it normal that the person putting together a deal like this gets 50% of the equity for his/her work? It seems excessive to me, but I have no experience of such deals, would love to hear what's normal in the US.
Thanks,
Martin